Archive for September, 2009

Superferry May Never Have Been Viable Business

Tuesday, September 22nd, 2009

PBN blames flawed business plan for Hawaii Superferry’s demise

September 21st, 2009

Governor Linda Lingle was “off the mark and unrealistic” when she blamed the business community’s supposed lack of support for the demise of the Superferry, according to an editorial in the current print edition of Pacific Business News.

Instead, PBN went back to fundamentals and questioned the whole Superferry business plan.

Putting aside state officials’ blunder in reasoning that the Superferry didn’t need an environmental assessment, we are not convinced that there was enough passenger, vehicle and freight revenue to cover the cost of running two big ships.

In its brief time in service, the ferry showed it was unreliable and that the trip to Maui produced a nightmare of seasickness. Small businesses found it still made more sense to put their goods on a barge than to commit a driver and truck to an all-day run to or from Oahu.

Paid subscribers to Pacific Business News can read the article here

Posted in Superferry | No Comments »

Tide Turns on Superferry

Friday, September 11th, 2009

With the bankruptcy of Hawaii Superferry comes the end of dissembling PR. In a complete change of heart, the Maui News recognized Gov. Linda Lingle’s role in the demise of the operation:


“Frankly, we are tired of politicians who will not admit they made a mistake. Fess up, governor, your administration blew it. The Superferry may not have made it even with an EIS, but without one, it was doomed. And your administration is the one that let it sail without one.

So governor, the next time you are looking for someone to blame for the failure of the ferry, try looking in the mirror. Without that personal admission, everything else is just sour grapes.”

Read more at the Maui News.

Meanwhile Superferry manufacturer, Austal, admitted their investment was made in order to obtain the Joint Highspeed Vessel Military contract – which they did. According to Austal CEO Bob Brownin:


Sure, yeah the Hawaii Super Ferry contract really was quite unusual. We were actually helping that company get started and put $30 million of mezzanine debt into the business which then allowed us to contract to build two large catamaran ferries for them. And strategically was important because it allowed us to build our workforce up in Mobile, Alabama which then allowed us to win the Joint High Speed Vessel program which is a very close derivative to that whole forum. So while it was unfortunate that Hawaii Super Ferry filed for Chapter 11, it was an unusual thing that we normally wouldn’t do, but it did position us for a much more lucrative contract with the Navy…

Bob Browning: It really was a conscious decision…


View video of the interview here


Posted in Superferry | 7 Comments »